CSLB C20 TRADE TOUGHER EXAM SCRIPT
FULL QUESTIONS AND CORRECT ANSWERS
REVIEW
●● Trade Confirmation
Answer: document that contains details of a transaction, including the
settlement date and amount of money due from or owed to a customer
●● Trade Confirmation due by
Answer: on or before the settlement
date.
●● Bid price
Answer: PRice at which you can sell; highest dealer willing to pay
●● Ask
Answer: price to buy
●● Inside MArket
Answer: aka spread, difference between highest bid and lowest ask
●● Narrow Spread
,Answer: Actively traded
●● Wide spread
Answer: thinly traded
●● 5% policy
Answer: Comission, markup and down should be fair, and shouldn't
exceed 5%
●● 5% policy applies to
Answer: nonexempt securities traded OTC and lsited on secondary
market
●● 5% does not apply to
Answer: exempt securities like treasuries and munis
●● Exchanges represent a __ market with _
Answer: Auction with competitive buyers/sellers
●● First Market
Answer: Trading securities on an exchange, auction
●● Second market
, Answer: trading unlisted securities OTC, negotiated
●● Third market
Answer: listed securities OTC, negotiated
●● Fourth market
Answer: electronic trading of large blocks between institutional
investors (ECN or instinet_
●● Exchange
Answer: Physical place where listed securities trade
●● Comission House (floor) broker
Answer: exectues orders for client's of broker's firm; charge comission
●● Two Dollar broker
Answer: can execute orders for several floor brokers; charges comission
to borker
●● Registered Completive Traders
Answer: execute orders on own accounts, client orders take priority
●● Specialist also known as
FULL QUESTIONS AND CORRECT ANSWERS
REVIEW
●● Trade Confirmation
Answer: document that contains details of a transaction, including the
settlement date and amount of money due from or owed to a customer
●● Trade Confirmation due by
Answer: on or before the settlement
date.
●● Bid price
Answer: PRice at which you can sell; highest dealer willing to pay
●● Ask
Answer: price to buy
●● Inside MArket
Answer: aka spread, difference between highest bid and lowest ask
●● Narrow Spread
,Answer: Actively traded
●● Wide spread
Answer: thinly traded
●● 5% policy
Answer: Comission, markup and down should be fair, and shouldn't
exceed 5%
●● 5% policy applies to
Answer: nonexempt securities traded OTC and lsited on secondary
market
●● 5% does not apply to
Answer: exempt securities like treasuries and munis
●● Exchanges represent a __ market with _
Answer: Auction with competitive buyers/sellers
●● First Market
Answer: Trading securities on an exchange, auction
●● Second market
, Answer: trading unlisted securities OTC, negotiated
●● Third market
Answer: listed securities OTC, negotiated
●● Fourth market
Answer: electronic trading of large blocks between institutional
investors (ECN or instinet_
●● Exchange
Answer: Physical place where listed securities trade
●● Comission House (floor) broker
Answer: exectues orders for client's of broker's firm; charge comission
●● Two Dollar broker
Answer: can execute orders for several floor brokers; charges comission
to borker
●● Registered Completive Traders
Answer: execute orders on own accounts, client orders take priority
●● Specialist also known as
